Assignment Nash Product

Published by Mario Oettler on

Last Updated on 28. April 2023 by Martin Schuster

Task

Calculate the optimal negotiation result according to the Nash product for the following situation:

Two players A and B want to split 10 Euro. Player A receives a payment of 1 Euro in case of a failed negotiation.

Solution

X1 = 0.55

X2= 0.45

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